Question : 21) When there a surplus of a product in an : 1381343

 

21) When there is a surplus of a product in an unregulated market, there is a tendency for

A) price to rise.

B) price to fall.

C) quantity demanded to increase.

D) quantity supplied to decrease.

 

22) If the market for blue tooth headsets is unregulated and is presently characterized by excess demand, you can accurately predict that price will

A) increase, the quantity demanded will fall, and the quantity supplied will rise.

B) increase, the quantity demanded will rise, and the quantity supplied will fall.

C) decrease, the quantity demanded will rise, and the quantity supplied will fall.

D) decrease, the quantity demanded will fall, and the quantity supplied will rise.

 

23) Cell phones and blue tooth headsets are complements. An increase in the price of blue tooth headsets would cause which of the following in the market for cell phones?

A) The equilibrium price and quantity of cell phones would increase.

B) The equilibrium price and quantity of cell phones would decrease.

C) The equilibrium price of cell phones would increase, and the equilibrium quantity would decrease.

D) The equilibrium price of cell phones would decrease, and the equilibrium quantity would increase.

24) Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones,

A) both equilibrium price and quantity will fall.

B) both equilibrium price and quantity will increase.

C) equilibrium price will increase, and quantity will decrease.

D) equilibrium price will fall, but quantity will increase.

 

Refer to the information provided in Figure 3.18 below to answer the questions that follow.

 

 

Figure 3.18

 

25) Refer to Figure 3.18. The current quantity of bags of pretzels supplied is 100. You accurately predict that in this market,

A) price tends to remain constant, and quantity supplied increases.

B) price, quantity demanded, and quantity supplied decrease.

C) price and quantity supplied decrease, and quantity demanded increases.

D) price and quantity demanded increase, and quantity supplied decreases.

26) When Hurricane Katrina hit Louisiana in 2005, approximately half of the sugar cane crop was destroyed. Ceteris paribus

A) the demand for sugar decreased, and the price of sugar decreased.

B) the supply of sugar decreased, and the price of sugar increased.

C) the supply of sugar decreased, and the price of sugar decreased.

D) the demand for sugar increased, and the price of sugar increased.

 

27) Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers, you would expect that

A) the demand for bacon cheeseburgers would increase, and the price of bacon cheeseburgers would increase.

B) the demand for bacon cheeseburgers would decrease, and the price of bacon cheeseburgers would fall.

C) the supply of bacon cheeseburgers would decrease, and the price of bacon cheeseburgers would increase.

D) the supply of bacon cheeseburgers would increase, and the price of bacon cheeseburgers would decrease.

 

28) If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

A) decrease in the quantity supplied of gasoline-powered lawnmowers, a reduction in the price, and an increase in the quantity demanded.

B) decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the quantity demanded.

C) decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand.

D) increase in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand.

29) Which of the following will definitely occur when there is a simultaneous increase in demand and an increase in supply?

A) an increase in equilibrium price

B) a decrease in equilibrium price

C) an increase in equilibrium quantity

D) a decrease in equilibrium quantity

 

30) A movement along the demand curve to the right may be caused by a(n)

A) decrease in income.

B) increase in supply.

C) fall in the number of substitute goods.

D) rise in the price of inputs.

 

 

 

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